The shareholders of Zee Entertainment have rejected a proposal for the reappointment of Punit Goenka as director, according to a regulatory filing by the company.

The filing by Zee Entertainment Enterprises Ltd (ZEEL) stated that the resolution for Goenka’s reappointment was defeated in the company’s annual general meeting (AGM).

Resolution number three in the AGM, which proposed Goenka’s reappointment as director, was supported by only 49.54 per cent of the votes cast, while 50.4 per cent voted against it.

“Resolution No. 3 (Goenka’s reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” ZEEL said.

This is a major setback for Goenka who is currently the CEO of the company. Several proxy firms had earlier advised the shareholders to vote against resolution number three.

However, the three other resolutions, adopting the financial statement for FY’24, declaring a dividend, and ratifying remuneration to cost auditors, were passed.

“Except for resolution number three, all the aforesaid resolutions were passed with requisite majority,” it said.

The Companies Act 2013 mandates that an ordinary resolution at an annual general meeting must be passed by a simple majority of (50 per cent plus one) vote.

Earlier this month, Punit Goenka resigned from the post of managing director of ZEEL. However, he continued as CEO of the media and entertainment major. He had also withdrawn himself from reappointment for the said post in the AGM.

While sharing Goenka’s resignation letter to exchanges last week, Zee Entertainment said he is “withdrawing his consent for his reappointment as managing director of the company as proposed in the notice of the ensuing annual general meeting”.

On October 18, the ZEEL board approved the proposal for Goenka’s reappointment for a five-year term, effective January 1, 2025, to December 31, 2029.

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